What to Do about PenFedCU

What to Do about PenFedCU

I joined Penfed Credit Union early this month because of their rewards Visa. They turned me down and I can't figure out why. Should I send them a RECONN letter, asking them to reconsider? Or should I call them? They said that I had too many obligations, which was weird because I only have my mortgage pymt of $3100/mo, income of $7500/mo and an Equifax score of 689, which is what they pulled. My Debt to Income ratio is good, I also have a good mix of credit. I applied for that card with confidence I'd get approved so I took a hit on my credit inquiry and got NO card in return. This has me pissed off. Could you guys give me my next step in this situation.

Re: What to Do about PenFedCU

Hello!

Sorry to hear about your denial... I think i heard somewhere that your mortgage/ rent should be about 30% or so of your income.. im just putting some ideas out there. Maybe i heard wrong but could be what they mean by too many credit obligations blah blah.... GL

Re: What to Do about PenFedCU

caliking wrote:I joined Penfed Credit Union early this month because of their rewards Visa. They turned me down and I can't figure out why. Should I send them a RECONN letter, asking them to reconsider? Or should I call them? They said that I had too many obligations, which was weird because I only have my mortgage pymt of $3100/mo, income of $7500/mo and an Equifax score of 689, which is what they pulled. My Debt to Income ratio is good, I also have a good mix of credit. I applied for that card with confidence I'd get approved so I took a hit on my credit inquiry and got NO card in return. This has me pissed off. Could you guys give me my next step in this situation.

I'm confused - you say you have only your mtg pmt of $3100/mo (which they might think is a bit high for your income - over 40%) but you have a good mix of credit. Do you have CCs you didn't mention? If so, and if you have healthy CLs on those CCs (even with 0 balance), Penfed might be declining you b/c they think you have sufficient CLs for your income. I'm not 100% certain but I think 689 may be a little on the low side for them - I think they like to see higher scores. Also they don't like seeing a lot of recent inqs so if you'd applied other places that might be hurting your chances with them.

In your shoes I'd probably give them a friendly call. Their customer service is extremely professional, so you may be able to at least get a better explanation than what you got even if they don't change their mind. Good luck!

Re: What to Do about PenFedCU

hmmm, I hope that's not the case. I didn't include my wife's income because I didn't want the card joint. I want that card!!!!!!! They give 5% back on gas purchases Yes I have 4 other major cc's their balances are 0, I have 3 dept. cards, whose balances are 0, and I have student loans which are in deferrment. I make decent money so, I think my income is ok. Maybe you're right, just cause I think 689 is good, penfed might think it's alittle low. Goodness it's taken all my 37 yrs to get to 689!!! I'll keep trying

Re: What to Do about PenFedCU

Heck i think 689 is great! But im working my way up still....lol..... I think what the other poster meant is 689 is low for penfed...I think they are more "Prime" of Credit Union and want to see scores above. 700.... Not that your score is too low.. But i would call for sure...I would also search penfed and read through some threads to see who got approved for what and with what scores.....

Re: What to Do about PenFedCU

I wasn't dissing your 689 - it's a pretty decent score. But some CCs are pickier than others and from what I've heard Penfed can be among the picky. Like I said though their CS is wonderful so a phone call might help you a lot.

Re: What to Do about PenFedCU

689 is fine with PenFed. I received a $10K CC from them with a similar score. Check your CR's for problems. Also, PenFed does not like recent inquiries or new credit. Your high mortgage payment may well be what is putting them off. It is not the score that sets them off - it is something else that we don't have completely figured out. If they think you have enough credit you will not get from them.

PenFed does not do joint applications or consider HH income. Only the applicant's and they may ask for proof of some people. Their CSR's are very nice. Give them a call and see what you can find out.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.